Here we have an updated S&P chart. You can see where I exited my short trade from a few days ago on Mondays opening. This is exactly why I exit short term trades against the trend very quickly, had I held that position, I would be sitting on a big loss. The way I exited brought in a very nice profit of 13 S&P points.
I have written in my newsletter about my larger picture timing system that I have developed for the S&P. Although very close to triggerring a short sale indication, it has not done so yet. It will most likely be held off for itleast another week due to the rally in the bond market (red line).
I do expect this bond rally to slow down here and perhaps move back down in the next week or so, which might setup the S&P sell signal at that time. There are several components to that system, and most are lined up on the short side, but not all of them. Until it signals a sell, it is still green light to the upside, and exit counter trend trades quickly.